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Score Higher on Verified L4M5 | Commercial Negotiation Exam Questions with Answers

Are you ready to take the Commercial Negotiation? To learn L4M5 exam questions, smart security solutions, and move IT forward, you need the CIPS L4M5 Certification. Whether you're making security rules for the whole company or working on hard problems, CIPS makes sure you're ready for anything. Crack4sure offers study materials and practice problems covering the exam syllabus for CIPS Courses, including Commercial Negotiation. Check for daily deals to get products that can help you pass.

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  • Exam Name: Commercial Negotiation
  • Last Update: 19-Jan-2026
  • Questions and Answers: 377
  • Single Choice: 303 Q&A's
  • Multiple Choice: 74 Q&A's

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L4M5 Questions and Answers

Question # 1

A public agency opens a tendering process for a road building project that lasts approximately 1 year. They post their requirements on public journal and receive some interests. After conducting due diligence process and selecting the lowest bidder, the project commences. However, the supplier complains that price of material increases because of a shortage of supply, then they demands an 5% uptick in contract value. The agency investigates the increment and sees that there is indeed a fluctuation in prices of supplier's input. They are likely to accept the proposal, but they are also concerned that supplier may demand more. To avoid making another concession with the supplier, which of the following should be a priority action of the agency?

A.

Disapprove supplier's demands until they finish the project

B.

Seek approval from higher authority

C.

Document a contract variation that only allows another concession if some specific conditions arise

D.

Postpone the decision making until the budget is ready

Question # 2

One of the most important steps in preparing for negotiations is to appraise the relative power of the parties. The buying organisation must assess its bargaining power against that of the supplier it intends to negotiate with. This information is necessary in facilitating the preparation, the negotiation team and the negotiation strategy.

In what situation is the bargaining power of buyers likely to be high relative to suppliers?

A.

The supplier’s product is critical to the buyer’s business

B.

There are fewer buyers relative to suppliers

C.

The buyer’s requirement is urgent and cannot be postponed

D.

There are few suppliers relative to buyers

Question # 3

If the price of a good is above the equilibrium price, which of the following will happen?

A.

The quantity demanded is equal to the quantity supplied and the price remains unchanged

B.

There is a shortage (i.e. an excess demand) and the price will fall

C.

There is a surplus (i.e. an excess supply) and the price will rise

D.

There is a surplus (i.e. an excess supply) and the price will fall

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